Chevron Corp (CVX): Today's Featured Energy Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

Chevron ( CVX) pushed the Energy industry lower today making it today's featured Energy laggard. The industry as a whole closed the day down 1.5%. By the end of trading, Chevron fell $1.24 (-1.0%) to $121.45 on light volume. Throughout the day, 4,502,730 shares of Chevron exchanged hands as compared to its average daily volume of 6,505,700 shares. The stock ranged in price between $121.26-$122.76 after having opened the day at $121.87 as compared to the previous trading day's close of $122.69. Other companies within the Energy industry that declined today were: GeoPetro Resources Company ( GPR), down 8.4%, Cubic Energy ( QBC), down 6.5%, Magnum Hunter Resources Corportion ( MHR), down 5.4% and Alon USA Energy ( ALJ), down 5.3%.
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Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. The company operates in two segments, Upstream and Downstream. Chevron has a market cap of $235.9 billion and is part of the basic materials sector. The company has a P/E ratio of 9.2, below the S&P 500 P/E ratio of 17.7. Shares are up 12.5% year to date as of the close of trading on Monday. Currently there are 11 analysts that rate Chevron a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Chevron as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, North American Energy Partners Incorporate ( NOA), down 17.8%, New Concept Energy ( GBR), down 7.8%, Barnwell Industries ( BRN), down 6.0% and Andatee China Marine Fuel Services Corporat ( AMCF), down 4.8% , were all gainers within the energy industry with Penn West Petroleum ( PWE) being today's featured energy industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the energy industry could consider Energy Select Sector SPDR ( XLE) while those bearish on the energy industry could consider Proshares Short Oil & Gas ( DDG).

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